Texas 2017 - 85th 1st C.S.

Texas House Bill HB196 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	85S10337 LHC-D
2	2	By: Metcalf H.B. No. 196
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to a limitation on increases in the appraised value of real
8	8	property other than a residence homestead for ad valorem tax
9	9	purposes.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 1.12(d), Tax Code, is amended to read as
12	12	follows:
13	13	(d) For purposes of this section, the appraisal ratio of a
14	14	homestead to which Section 23.23 applies or of other real property
15	15	to which Section 23.231 applies is the ratio of the property's
16	16	market value as determined by the appraisal district or appraisal
17	17	review board, as applicable, to the market value of the property
18	18	according to law. The appraisal ratio is not calculated according
19	19	to the appraised value of the property as limited by Section 23.23
20	20	or 23.231.
21	21	SECTION 2. Subchapter B, Chapter 23, Tax Code, is amended by
22	22	adding Section 23.231 to read as follows:
23	23	Sec. 23.231. LIMITATION ON APPRAISED VALUE OF REAL PROPERTY
24	24	OTHER THAN RESIDENCE HOMESTEAD. (a) In this section, "new
25	25	improvement" means an improvement to real property made after the
26	26	most recent appraisal of the property that increases the market
27	27	value of the property and the value of which is not included in the
28	28	appraised value of the property for the preceding tax year. The
29	29	term does not include repairs to or ordinary maintenance of an
30	30	existing structure or the grounds or another feature of the
31	31	property.
32	32	(b) This section does not apply to a residence homestead
33	33	that qualifies for an exemption under Section 11.13.
34	34	(c) Notwithstanding the requirements of Section 25.18 and
35	35	regardless of whether the appraisal office has appraised the
36	36	property and determined the market value of the property for the tax
37	37	year, an appraisal office may increase the appraised value of real
38	38	property to which this section applies for a tax year to an amount
39	39	not to exceed the lesser of:
40	40	(1) the market value of the property for the most
41	41	recent tax year that the market value was determined by the
42	42	appraisal office; or
43	43	(2) the sum of:
44	44	(A) five percent of the appraised value of the
45	45	property for the preceding tax year;
46	46	(B) the appraised value of the property for the
47	47	preceding tax year; and
48	48	(C) the market value of all new improvements to
49	49	the property.
50	50	(d) When appraising real property to which this section
51	51	applies, the chief appraiser shall:
52	52	(1) appraise the property at its market value; and
53	53	(2) include in the appraisal records both the market
54	54	value of the property and the amount computed under Subsection
55	55	(c)(2).
56	56	(e) The limitation provided by Subsection (c) takes effect
57	57	as to a parcel of real property on January 1 of the tax year
58	58	following the first tax year in which the owner owns the property on
59	59	January 1. The limitation expires on January 1 of the tax year
60	60	following the tax year in which the owner of the property ceases to
61	61	own the property.
62	62	(f) Notwithstanding Subsections (a) and (c) and except as
63	63	provided by Subdivision (2) of this subsection, an improvement to
64	64	real property that would otherwise constitute a new improvement is
65	65	not treated as a new improvement if the improvement is a replacement
66	66	structure for a structure that was rendered uninhabitable or
67	67	unusable by a casualty or by wind or water damage. For purposes of
68	68	appraising the property under Subsection (c) in the tax year in
69	69	which the structure would have constituted a new improvement:
70	70	(1) the appraised value the property would have had in
71	71	the preceding tax year if the casualty or damage had not occurred is
72	72	considered to be the appraised value of the property for that year,
73	73	regardless of whether that appraised value exceeds the actual
74	74	appraised value of the property for that year as limited by
75	75	Subsection (c); and
76	76	(2) the replacement structure is considered to be a
77	77	new improvement only if:
78	78	(A) the square footage of the replacement
79	79	structure exceeds that of the replaced structure as that structure
80	80	existed before the casualty or damage occurred; or
81	81	(B) the exterior of the replacement structure is
82	82	of higher quality construction and composition than that of the
83	83	replaced structure.
84	84	(g) In this subsection, "disaster recovery program" means
85	85	the disaster recovery program administered by the General Land
86	86	Office that is funded with community development block grant
87	87	disaster recovery money authorized by the Consolidated Security,
88	88	Disaster Assistance, and Continuing Appropriations Act, 2009 (Pub.
89	89	L. No. 110-329), and the Consolidated and Further Continuing
90	90	Appropriations Act, 2012 (Pub. L. No. 112-55). Notwithstanding
91	91	Subsection (f)(2), and only to the extent necessary to satisfy the
92	92	requirements of the disaster recovery program, a replacement
93	93	structure described by that subdivision is not considered to be a
94	94	new improvement if to satisfy the requirements of the disaster
95	95	recovery program it was necessary that:
96	96	(1) the square footage of the replacement structure
97	97	exceed that of the replaced structure as that structure existed
98	98	before the casualty or damage occurred; or
99	99	(2) the exterior of the replacement structure be of
100	100	higher quality construction and composition than that of the
101	101	replaced structure.
102	102	SECTION 3. Section 42.26(d), Tax Code, is amended to read as
103	103	follows:
104	104	(d) For purposes of this section, the value of the property
105	105	subject to the suit and the value of a comparable property or sample
106	106	property that is used for comparison must be the market value
107	107	determined by the appraisal district when the property is [a
108	108	residence homestead] subject to the limitation on appraised value
109	109	imposed by Section 23.23 or 23.231.
110	110	SECTION 4. Sections 403.302(d) and (i), Government Code,
111	111	are amended to read as follows:
112	112	(d) For the purposes of this section, "taxable value" means
113	113	the market value of all taxable property less:
114	114	(1) the total dollar amount of any residence homestead
115	115	exemptions lawfully granted under Section 11.13(b) or (c), Tax
116	116	Code, in the year that is the subject of the study for each school
117	117	district;
118	118	(2) one-half of the total dollar amount of any
119	119	residence homestead exemptions granted under Section 11.13(n), Tax
120	120	Code, in the year that is the subject of the study for each school
121	121	district;
122	122	(3) the total dollar amount of any exemptions granted
123	123	before May 31, 1993, within a reinvestment zone under agreements
124	124	authorized by Chapter 312, Tax Code;
125	125	(4) subject to Subsection (e), the total dollar amount
126	126	of any captured appraised value of property that:
127	127	(A) is within a reinvestment zone created on or
128	128	before May 31, 1999, or is proposed to be included within the
129	129	boundaries of a reinvestment zone as the boundaries of the zone and
130	130	the proposed portion of tax increment paid into the tax increment
131	131	fund by a school district are described in a written notification
132	132	provided by the municipality or the board of directors of the zone
133	133	to the governing bodies of the other taxing units in the manner
134	134	provided by former Section 311.003(e), Tax Code, before May 31,
135	135	1999, and within the boundaries of the zone as those boundaries
136	136	existed on September 1, 1999, including subsequent improvements to
137	137	the property regardless of when made;
138	138	(B) generates taxes paid into a tax increment
139	139	fund created under Chapter 311, Tax Code, under a reinvestment zone
140	140	financing plan approved under Section 311.011(d), Tax Code, on or
141	141	before September 1, 1999; and
142	142	(C) is eligible for tax increment financing under
143	143	Chapter 311, Tax Code;
144	144	(5) the total dollar amount of any captured appraised
145	145	value of property that:
146	146	(A) is within a reinvestment zone:
147	147	(i) created on or before December 31, 2008,
148	148	by a municipality with a population of less than 18,000; and
149	149	(ii) the project plan for which includes
150	150	the alteration, remodeling, repair, or reconstruction of a
151	151	structure that is included on the National Register of Historic
152	152	Places and requires that a portion of the tax increment of the zone
153	153	be used for the improvement or construction of related facilities
154	154	or for affordable housing;
155	155	(B) generates school district taxes that are paid
156	156	into a tax increment fund created under Chapter 311, Tax Code; and
157	157	(C) is eligible for tax increment financing under
158	158	Chapter 311, Tax Code;
159	159	(6) the total dollar amount of any exemptions granted
160	160	under Section 11.251 or 11.253, Tax Code;
161	161	(7) the difference between the comptroller's estimate
162	162	of the market value and the productivity value of land that
163	163	qualifies for appraisal on the basis of its productive capacity,
164	164	except that the productivity value estimated by the comptroller may
165	165	not exceed the fair market value of the land;
166	166	(8) the portion of the appraised value of residence
167	167	homesteads of individuals who receive a tax limitation under
168	168	Section 11.26, Tax Code, on which school district taxes are not
169	169	imposed in the year that is the subject of the study, calculated as
170	170	if the residence homesteads were appraised at the full value
171	171	required by law;
172	172	(9) a portion of the market value of property not
173	173	otherwise fully taxable by the district at market value because of:
174	174	(A) action required by statute or the
175	175	constitution of this state, other than Section 11.311, Tax Code,
176	176	that, if the tax rate adopted by the district is applied to it,
177	177	produces an amount equal to the difference between the tax that the
178	178	district would have imposed on the property if the property were
179	179	fully taxable at market value and the tax that the district is
180	180	actually authorized to impose on the property, if this subsection
181	181	does not otherwise require that portion to be deducted; or
182	182	(B) action taken by the district under Subchapter
183	183	B or C, Chapter 313, Tax Code, before the expiration of the
184	184	subchapter;
185	185	(10) the market value of all tangible personal
186	186	property, other than manufactured homes, owned by a family or
187	187	individual and not held or used for the production of income;
188	188	(11) the appraised value of property the collection of
189	189	delinquent taxes on which is deferred under Section 33.06, Tax
190	190	Code;
191	191	(12) the portion of the appraised value of property
192	192	the collection of delinquent taxes on which is deferred under
193	193	Section 33.065, Tax Code; and
194	194	(13) the amount by which the market value of property
195	195	[a residence homestead] to which Section 23.23 or 23.231, Tax Code,
196	196	applies exceeds the appraised value of that property as calculated
197	197	under Section 23.23 or 23.231, Tax Code, as applicable [that
198	198	section].
199	199	(i) If the comptroller determines in the study that the
200	200	market value of property in a school district as determined by the
201	201	appraisal district that appraises property for the school district,
202	202	less the total of the amounts and values listed in Subsection (d) as
203	203	determined by that appraisal district, is valid, the comptroller,
204	204	in determining the taxable value of property in the school district
205	205	under Subsection (d), shall for purposes of Subsection (d)(13)
206	206	subtract from the market value as determined by the appraisal
207	207	district of properties [residence homesteads] to which Section
208	208	23.23 or 23.231, Tax Code, applies the amount by which that amount
209	209	exceeds the appraised value of those properties as calculated by
210	210	the appraisal district under Section 23.23 or 23.231, Tax Code, as
211	211	applicable. If the comptroller determines in the study that the
212	212	market value of property in a school district as determined by the
213	213	appraisal district that appraises property for the school district,
214	214	less the total of the amounts and values listed in Subsection (d) as
215	215	determined by that appraisal district, is not valid, the
216	216	comptroller, in determining the taxable value of property in the
217	217	school district under Subsection (d), shall for purposes of
218	218	Subsection (d)(13) subtract from the market value as estimated by
219	219	the comptroller of properties [residence homesteads] to which
220	220	Section 23.23 or 23.231, Tax Code, applies the amount by which that
221	221	amount exceeds the appraised value of those properties as
222	222	calculated by the appraisal district under Section 23.23 or 23.231,
223	223	Tax Code, as applicable.
224	224	SECTION 5. This Act applies only to the appraisal of real
225	225	property other than a residence homestead for ad valorem tax
226	226	purposes for a tax year that begins on or after the effective date
227	227	of this Act.
228	228	SECTION 6. This Act takes effect January 1, 2018, but only
229	229	if the constitutional amendment proposed by the 85th Legislature,
230	230	1st Called Session, 2017, to authorize the legislature to establish
231	231	a limit on the maximum appraised value of real property other than a
232	232	residence homestead for ad valorem tax purposes of 105 percent or
233	233	more of the appraised value of the property for the preceding tax
234	234	year is approved by the voters. If that amendment is not approved
235	235	by the voters, this Act has no effect.